Flexible office operator WeWork is launching a 1-for-40 reverse stock split to let it remain listed on the New York Stock Exchange after its share price tanked.
The split will affect the loss-making company’s outstanding shares of class A and class C common stock as of the market close on 1 September. Every 40 shares will automatically be combined into one.
The move is aimed at boosting WeWork’s share price to regain compliance with a $1 (78p) per share minimum closing price required to be listed on the exchange. WeWork was warned in April that it had failed to meet this requirement.
“The company does not expect the reverse stock split to impact its current or future business operations,” WeWork said in an announcement of the initiative.
WeWork’s shares closed on Friday at 14 cents, down from a close of $11.38 (£8.93) on its first day of trading back in October 2021. The company has said this month there is now a “substantial doubt” over its ability to remain in business.
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